“This is everyone’s problem, because if someone loses a client, we may never recover them, and they could go to another country,” Amaro Reis, president of the Portuguese Association of the Plastics Industry (APIP), told Lusa news agency. His company – Plásticos 88 in Ortigosa (Leiria) – is operating “almost at one hundred per cent,” more than a month after the devastation that hit the Leiria and Marinha Grande region.

Friendly Portuguese

“In times of adversity, the Portuguese are very friendly. What happened was a great misfortune, not an economic problem, and today it’s one group, tomorrow it could be another,” he summarised.

The Secretary-General of the National Association of Mould Industries (Cefamol), Manuel Oliveira, recalled that in the first days after the storm passed through the territory, the “spirit of collaboration within the sector” was felt.

“Companies that had not been affected, either by luck or because they are not located in this area, offered to help with some operations, and the association created a pool of resources that served to address urgent situations,” explained the Cefamol leader.

Mould production affected

More than half of the country's mould production is located in the Marinha Grande region, and “30 to 40 per cent” of Portugal's plastics production is in the central region, two sectors that are strongly export-oriented and employ a total of 40,000 people.

Storm Kristin, on 28 January, left a trail of destruction across the central region, particularly affecting the Leiria, Marinha Grande, and Ourém areas, damaging homes, businesses, public facilities, and natural resources, notably felling millions of trees.

Affecting economy

The severe impacts on two of the region's most characteristic economic sectors, moulds and plastics, will only avoid structural consequences and damage the economic balance because of solidarity among companies and the understanding of international clients, according to officials.

“The mould sector is reacting with its internal organisation. First, it was necessary to repair the emergencies and then return to work as quickly as possible, after the restoration of power and communications,” stated Manuel Oliveira.

“We believe we will retain our clients,” but “there may be more sensitive situations,” because “some have their own commitments, and their interests must be taken into consideration.”

“Racing against the clock”

In the plastics sector, “these have been weeks of racing against the clock,” said Amaro Reis, giving the example of his own company, with a hundred workers.

“We didn’t resort to layoffs, we cleaned up, some employees took vacations, partly because they have problems at home, and it has been possible to recover production capacity, but there is still equipment to repair, waiting for spare parts from Italy and Germany,” he explained.

According to Amaro Reis, the “plastics sector is very transversal, and the central region reflects the diversity of industries in the sector,” which, by tradition, work for export and for organisations that are not easy to deal with.”

“Of course, there will be clients who will cite the delays to claim compensation or shift their requests, but business owners have immense resilience and will manage to overcome this,” the businessman confided, recalling the moments when the depression passed through the region.

“Storm is too mild a word for what happened. What occurred was an extreme natural phenomenon like a hurricane or a tornado,” he emphasised.

Insurance companies are already in place, and most industries have some type of legal protection.

“These are companies that already have some structure and will have insurance; the assessments ended up being quick, but now the process of collecting quotes or damage assessments is more time-consuming,” because, in the first phase, the organisations “had to address pressing needs.”

Government support

Regarding government support, Amaro Reis acknowledged that the executive branch is seen as “everyone’s family allowance,” but the main concern is to avoid excessive indebtedness for companies.

“The Government has to do everything in its power and has been trying, with support and financing lines, which create debt for companies, but it’s better than nothing,” he said.

Looking to the future, the head of APIP, a sector that moves 8 billion euros annually, hopes that a “non-refundable component will emerge to mitigate the financial burden,” along with greater “speed in processes” and a reinforcement of “social security support, which makes perfect sense.”

Furthermore, Amaro Reis hopes that “funds that can be allocated, with a plan for the region, will be used so that companies have the courage to take a step forward and overcome this crisis.”

The mould-making sector represents nearly 800 million euros annually, 85 per cent of which is destined for exports and is essential in production chains in other countries, from the automotive, automation, and aerospace industries.

Solving the issues

Companies in the plastics, moulds, and ceramics sectors (also highly relevant in the region) have organised themselves through Nerlei (the Business Association of the Leiria Region) to speak with one voice and demand specific support, such as in the energy sector.

“Many people had to use generators,” and “we are asking for a reduction in the tax on the fuel we were forced to buy,” explained Amaro Reis, who is also requesting a reduction in the items on electricity bills that do not specifically correspond to energy.

Energy is one of the sector's highest costs, “regulatory charges have increased by 300 per cent,” and “companies that are operating will have to pay even though they didn't have the supply problem that existed,” he emphasised.

For his part, the Secretary-General of Cefamol acknowledged that the “government was quick to appear and touched on some issues that are sensitive to the mould industry,” but this support “will probably not be enough” and “there is still work to be done.”

As with plastics, there is a “great concern about not adding debt to companies,” but “by the end of the process, there will have to be a strengthening of these instruments or the creation of some new ones,” Manuel Oliveira believes.